Thursday, November 24, 2011

Sprott to purchase 1.5 billion worth of Silver for PSLV

From Commodityonline:

Canadian billionaire Eric Sprott has filed for the purchase of $1.5billion in Silver bullion for covering an expected demand in his Sprott Asset Management's silver ETF- PSLV. A $1.5 billion in purchase will require about 45 million oz of silver.
Such a large purchase has normally Lead to higher prices. Sprott's $580 million silver purchase in 2010 was accompanied by an almost 175% gain in COMEX Silver when prices surged from $18 to $49! The current purchase of $1.5 billion is almost 3 times the 2010 purchase and as such prices could easily double or even triple.

Barclay's iShares Silver Trust issue also witnessed rapid price acceleration. COMEX silver had doubled from $7.50 to $15 within 6 months till the launch of the ETF.

Based on the info above, Silver _may_ start moving to the upside in the coming weeks as more physical Silver is removed from the market.  I say _may_ because the CME, CFTC and the bullion banks may have other plans for the remainder of the year...   Mr. Sprott can be seen as the Hunt Brothers of the 2010/2011 and going forward.

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